Opinions
Kim Bolton
Stingray Digital Group Inc.
RAY.A-T
WATCH
Oct 24, 2023
Stock price when the opinion was issued
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This music media company produces music for cable companies. It trades at only 13 times earnings and could easily trade at higher multiples. They just bought a radio company that will be very accretive to earnings. The dividend has been increasing steadily. They have over 400 million users in over 156 different countries. Yield 2.6%. (Analysts’ price target is $11.64)
It is a very cheap company. They are in the passive music business like a radio station. They are very different to Spotify. They are in a slower growth industry. They are buying up radio-station-like businesses. The big growth recently was buying a radio station out east. Don't expect it to expand to a ten times multiple. He would want momentum to come back to the name.
Is fairly illiquid, but profitable and pays a 6.6% dividend. Price targets are high, so there's a runway ahead. But two-thirds of the business is concentrated in Canada, and a big risk is if song royalties rise. It's profitable though. He's watching it.